How to Start a Home Health Agency in 2022

Table of Content

• Home Care vs Home Health Care
• Step #7. Check state licensing requirements
• Prepare for Operations: Scheduling, Accounting, Time & Mileage Tracking
• Professional Certifications and Licenses
• Right Way To Open a Home Health Agency in 2023 – Best Guide
• Starting a Home Care Agency can cost $80K and Home Health $350K
• Keys to Starting a Home Health / Hospice Agency

If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business. Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN , articles of incorporation, and other legal documents and open your new account. S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just needs to elect to be an S-Corp for tax status.

Agency owners need a passion for the industry are always the most successful. Setting up the enterprise is very similar to setting up most of the other businesses in the country. The only major difference is the licensing and varying approval which are detailed below. Show your professionalism and get your name out there by joining local groups and associations, such as the National Association for Home Care & Hospice. Financial plan – This is where you will write a cash flow projection, balance sheet snapshot and break-even analysis. Book a demo and we’ll discuss your needs, state requirements, and explore how CareAcademy can get your staff trained and compliant as soon as possible.

Home Care vs Home Health Care

If you have Original Medicare, you may be able to receive home health care at no cost (though you might pay up to 20% of the Medicare-approved cost for durable medical equipment). If you have a Medicare Advantage Plan, you may qualify for additional coverage. Typically, home health care providers accept Medicare and, in many cases, Medicare will pay for home health care if you are a current recipient and meet certain qualifications. In addition to these simple tasks, a home health nurse helps facilitate communication between the patient's physician and caregivers. Continuity of care is extremely important, and a home health nurse helps keep the lines of communication open, helping teach all involved parties how to properly manage the patient's condition.

But because of this, there is often tough regional competition which will need to be planned for if a new venture is going to be successful. In the United States alone, the home health care industry is an $84 billion behemoth with no signs of slowing down. Home health benefit changes depending on whether you are currently in a hospital or if you are already at home. Remember, in both cases you must meet the eligibility requirements and qualify for coverage under either Part A or Part B. Home health care is available to any patient who needs it, but in order for it to be covered by Medicare, the patient must be deemed "homebound."

Step #7. Check state licensing requirements

You’ll need to set up back office operations, including accounting, billing, payroll, scheduling, and timekeeping software. Showing up on Google is not enough – people want to see social proof that you are a trustworthy company when making such an emotional investment like caring for a loved one. Decide on the best sources for referrals in your area, such as connecting with long-term care facilities and hospital discharge social workers.

These requirements for starting a home health care agency depend on a state-to-state basis. Is provided by medical professionals and includes wound care and general nursing services, such as monitoring blood pressure and mental state. This type of care is typically needed by senior citizens and those recently discharged from hospital.

Prepare for Operations: Scheduling, Accounting, Time & Mileage Tracking

Home care nurses typically work with elderly patients but may also provide services for children with mental or developmental issues, as well as patients with disabilities. While home health aides and personal care aides provide services to the same type of patient, a personal care aide's duties are typically limited to non-medical services. This may include dressing, bathing, cooking, cleaning, running errands, doing laundry, and providing companionship for their clients. Once the HHA has served ten clients requiring skilled nursing care they should send a letter, along with ten patient care plans, to both DQA and the chosen accrediting organization. This will trigger a combined unannounced Wisconsin licensure and Medicare certification survey by the accrediting organization.

For example, you could offer a package of full-day services and charge a daily rate. If you are not a physician or medical professional yourself, your first hire will be a qualified clinical supervisor. It is a requirement of Medicare that a physician or a registered nurse with more than one year of experience be in place as a clinical supervisor. The supervisor must be available as a resource at all times for the front line employees providing home health care services in patient homes. Most states also require a certified administrator be in place, although this position can be doubled by the clinical supervisor if that person is certified for both roles.

Professional Certifications and Licenses

One of the reasons home health care has become so prevalent in the last decade is thanks in large part to technological advances that have allowed high-tech equipment to be used in the home. Previously, this equipment was only accessible in a hospital or clinic. While there is a tremendous growth opportunity in this industry, it’s not a business that is necessarily for everyone. The fastest growing region is in Asia-Pacific,where the markets expect a compound annual growth rate of 9.7 percent from 2014 to 2020. This is based on advancements in health care infrastructure in India and China, as well as a rapidly aging Japanese population. The trend toward home health care is just as strong across the northern border.

Personal care and home health aides may not be required to hold any kind of certification, but state laws vary on this issue. Department of Labor's Bureau of Labor Statistics, if your agency plans to participate in Medicaid or Medicare reimbursement programs, your personal care and home health aides must pass a competency exam. The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in home health care. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Right Way To Open a Home Health Agency in 2023 – Best Guide

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running. If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market. D. The specific location and each jurisdiction in which sevices will be provided, according to the relevant planning region in the State Health Plan for that facility or service .

Keep in mind, it’s relatively easy to transfer your business to another state. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips. Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.